According to the report of Realty Trac, the organization to calculate filings of foreclosure, about one million properties have involved in the first quarter of this year, which is 7% more than the last year.
It means that one person among 138 people in the US has filed foreclosure in this quarter. If one of them or your beloved one is facing this issue, you should ensure you know well about the process.
There are usually six phases of the process of foreclosure while they vary from one state to another one. So, before you search “sell my house fast in Hurst” or advertise to “sell my house fast Watauga,” know some processes below:
When you as a borrower missed, in any case, one payment of the mortgage, it gets one payment default. In this case, your lender will notify with a notice of missed payment where they’ll indicate they didn’t receive your payment yet of a specific month.
Usually, you have to pay the mortgage payments every month’s first day. Also, some lenders offer an extended time that’s up to the 15th of each month. Then the lender can charge a fee for the late payment and send you if you miss the payment in due date.
This way, if you miss two payments, your lender will send you a Demand Letter. It’s more serious than they send the notice for the missed payment.
Notice of Default (NOD)
If you missed payments, then you’ll get a notice after 90 business days. For some states, the NOD appears prominently on the borrower’s the home. In this stage, they’ll handover the loan to the foreclosure department of your county where the location of the property is.
Also, they’ll inform you that the notice will keep as records. To settle the reinstate and payments the loan, your lender typically gives you more 90 days. It calls the reinstatement period.
Notice of Trustee’s Sale
Some people fail to pay the amount within 90 days after the NOD. Then, the lender issues another notice entitling ‘Notice of Trustee’s Sale’. It also keeps in the record of the country where your property is.
Also, the lender will publish an ad in the newspaper that your property will be available for public auction. They’ll publish it with the detail of the property with all owners’ names. Moreover, it’ll come with a description of where and when the auction will be held.
After placing your property on the public auction, it’ll be sold to the maximum price bidder. Also, the bidder should fill the essential requirements up. The lender or their representatives will go through a calculation on the opening bid.
They’ll do it based on the property value and the outstanding loan amount and other unpaid taxes if it has. A “Trustee’s Deed Upon Sale” will get the winner of the bid after confirming the highest bidder. Thus, the property will be owned by the new proprietor.
Among other phases, you’ll find Real Estate Owned (REO) and Eviction out there.